New EU Leadership and 2019 – 2024 Policy Priorities 1 Institutional Developments 2019 is a year of institutional change at the EU level. The May 2019 EU-wide elections to the European Parliament (Parliament) have resulted in an important shift in the relative balance of power among the large political groups, in comparison to the previous Parliament (see our May 2019 client alert for details). Importantly, the two largest political families at the EU level (i.e. the On 17 July 2019, the Parliament endorsed the candidacy of VDL as European People Party and the Socialists and Democrats Group) have the next European Commission president. Throughout the summer lost their joint majority in the Parliament and now require the support time, EU member states submitted their commissioner nominees to of at least one additional political group to form a majority. This means the president-elect. On 10 September 2019, VDL announced her team that the liberal forces in the new EU (i.e. Renew Europe Party) and/or of commissioners and the attribution of portfolios, alongside their the Green Party will have an important influence on the various legal mission letters – also highlighting a better-than-ever gender balance initiatives that the European Commission (Commission) will put forward in the new Commission. in the coming five-year legislative period.1 The hierarchical structure proposed by VDL differs from the structure The new Parliament, comprising 751 elected representatives from the of the outgoing Jean-Claude Juncker Commission. New elements 28 member states (including from the UK), formally started its mandate include three executive vice presidents (EVPs) who hold a double on 2 July 2019 and elected David Sassoli (Socialists and Democrats function as both coordinators of various policy areas and direct Group, Italy) as its president for the first two and a half years. responsibility for a specific policy via leading a dedicated directorate general (DG). In addition to the three EVPs, there will be five vice In July 2019, disregarding the “Spitzenkandidaten” process favoured presidents, four of which will only have coordinating roles and will by the Parliament, the EU heads of state and government nominated not lead a dedicated directorate general, and the remaining 18 the German Defence Minister Ursula von der Leyen (VDL) as the new commissioners, all with at least one dedicated policy area for them European Commission president-elect. For the first time in the history to lead on. of the EU, a female Commission president will be at the top of this crucially important EU institution. VDL is also the first president of The UK had not put forward a candidate for the VDL commissioner in the Commission since Jacques Delors (1985 – 1995) not to have been the anticipation that Brexit would occur on 31 October 2019. Given drawn from among the members of the European council. that the UK has requested a delay of the Brexit deadline, it is now required to nominate a candidate for the new EU Commission team, In sync with the nomination of VDL, the EU heads of state and even if the tenure of the UK commissioner may come to an end as government also decided upon the nominations for other key political early as January 2020.3 jobs vacant at the EU level: However, the UK announced that it would not be submitting a • Charles Michel – As the new president of the European Council candidate before the UK elections, which take place on 12 December (former Prime Minister of Belgium), taking over on 1 December 2019. Taking into account that this decision constitutes a breach of 2019 from Donald Tusk. a member state legal obligations, the EU launched, on 14 November • Josep Borrell – As the new high representative of the Union 2019, an infringement proceeding against the UK for failing to name for Foreign Affairs and Security Policy (former Spanish Minister a candidate for EU Commissioner. of Foreign Affairs, EU and Cooperation), taking over from Federica On the following page is the current structure of the new Mogherini at the end of the current Commission term. EU Commission team. • Christine Lagarde – As the new president of the European Central Bank (former Managing Director of the International Monetary Fund), taking over on 1 November 2019 from Mario Draghi.2 1 The European Commission is the EU’s executive body with the exclusive power to 3 Following the Brexit extension until 31 January 2020, the UK is now legally formally put forward new EU legislation. obliged under recital 11 of the European Council Decision 2019/1810 to appoint a 2 Christine Lagarde has been succeed at the IMF by former EU Commissioner commissioner as soon as possible. Kristalina Georgieva (Bulgaria). 2 European Commission Leadership 2019 – 2024 Ursula von der Leyen European Commission President Executive Vice Presidents Frans Timmermans Margrethe Vestager Valdis Dombrovskis Executive Vice President Executive Vice President Executive Vice President European Green Deal A Europe fit for the Digital Age An Economy That Works for Europe (Commissioner for Climate Action) (Commissioner for Competition) (Commissioner for Financial Services) Vice Presidents Josep Borrell Fontelles Maroš Šefčovič Věra Jourová High Representative of the Union for Foreign Vice President Vice President Affairs and Security Policy/ Vice President Interinstitutional Relations and Foresight Values and Transparency Stronger Europe in the World Dubravka Šuica Margaritis Schinas Vice President Vice President Democracy and Demography Promoting our European Way of Life Commissioners Johannes Hahn Phil Hogan Mariya Gabriel Budget and Administration Trade Innovation, Research, Culture, Education and Youth Nicolas Schmit Paolo Gentiloni Janusz Wojciechowski Jobs and Social Rights Economy Agriculture Elisa Ferreira Olivér Várhelyi Stella Kyriakides Cohesion and Reforms Neighborhood and Enlargement Health and Food Safety Didier Reynders Adina Vălean Helena Dalli Justice Transport Equality Thierry Breton Ylva Johansson Janez Lenarčič Internal Market Home Affairs Crisis Management Jutta Urpilainen Kadri Simson Virginijus Sinkevičius International Partnerships Energy Environment, Oceans and Fisheries The UK announced it will submit a candidate after the UK elections. The delay is, nevertheless, constituting a breach of member state legal obligations. Consequently, an infringement proceeding against the UK was launched. 3 It has to be noted that the initial team composition of the VDL The listed ambitions capture policy areas that VDL believes are Commission looked slightly different. In early October 2019, the necessary to address the needs and concerns of European citizens, Parliament rejected for the first time a French commissioner and are also reflective of the challenging external operating nominee, Mrs. Sylvie Goulard, after holding two parliamentary environment. To support each strategic ambition, the Commission hearings. The rejection took place mainly due to concerns resulting services are contemplating a range of specific measures, which from ongoing investigations in France and the potential impact on the Commission may put forward as legislative or non-legislative her reputation as a future commissioner. Earlier, the Legal Affairs measures in the near future. Committee of the Parliament had already ruled out the proposed Trade is sure to be an early high-profile issue for the Commission, Romanian (Rovana Plumb) and Hungarian (László Trócsányi) given the approach of the Trump Administration and the aspiration nominees prior to their parliamentary hearings due to apparent to extend the EU’s network of Free Trade Agreements. The conflict of interests. Commission’s focus on the environment opens the way for the EU In early November 2019, VDL approved the new nominees by the to try to achieve global leadership on climate change. The digital French, Hungarian and Romanian governments: Thierry Breton ambitions look more challenging, partly because the EU has just (former CEO of tech company ATOS), Oliver Varhelyi (former agreed a package of measures that took reform as far as the permanent representative of Hungary to the EU) and Adina Valean member states and Parliament would accept. In other areas, the (the chair of the Industry, Research and Energy Committee of the expectation may be more continuity than radical change. Parliament), respectively. We next examine a range of key policy areas in order to distil the The Legal Affairs Committee approved their candidacies on 12 general direction of travel in terms of new EU policy priorities. November. Following the written responses and the Parliamentary Hearings, the respective Committees approved Thierry Breton and Environment/Climate Action Adina Valean on 14 November, and Oliver Varhelyi on 18 November One of the most important and horizontal policy areas under the 2019. The Council of the EU approved the appointment of new VDL Commission will be the broader area of sustainability under Commissioners from 26 EU Member States – all except the UK – on a hallmark initiative: the European Green Deal, to be coordinated 25 November 2019. The Parliament formally endorsed the College by EVP Frans Timmermans, of Commissioners on 27 November 2019, followed by the European Council approval on 28 November 2019 which allowed the new VDL Specific policy initiatives in this key focus area could include: Commission to officially start on 1 December 2019. • Increasing the EU’s emission reduction targets for 2030 progressively from 40% to 55% Policy Priorities • Introducing